Retail banking

Smart, effective real-time fraud prevention for retail banks

Adoption of digital banking services and savings platforms have presented significant challenges for retail banks when it comes to fraud prevention:

NetGuardians’ solution blocked 10 times fewer transactions than our former system and achieved a better fraud detection rate”. Read more

AKB, Switzerland

Scaling operations

Many retail banks rely on a set of rules to assess the risk of a fraudulent payment. When a transaction exceeds a set value or is sent to a proscribed destination, for example, an alert is raised and a member of staff contacts the customer for verification. As transaction volumes rise, these banks need to employ more staff to do the checking, adding considerable cost. At the same time, the vast majority of suspended transactions will not be fraudulent and these false alerts risk damaging the bank/customer relationship.

New cost pressures

FinTechs and digital-only banks enjoy far lower costs than many retail banks, allowing them to charge lower prices. This is putting pressure on retail banks to cut their own prices or risk losing market share. But retail banks are operating in a low interest-rate environment with caps on interchange fees, reducing their profitability just as they need to cut prices.

Time for real time

New digital financial services providers are increasingly offering secure, fast, even instant payments, which are popular with customers. Traditional banks wanting to offer the same need to upgrade their systems and streamline their processes so they can handle high volumes of information in real time or they risk losing market share.

Changing demands from customers and regulators

Customers worldwide have proven receptive to the ease and low cost of digital banking, becoming less loyal to their high-street bank. Meanwhile, regulators are trying to promote competition and innovation through open banking which brings new, costly liabilities and security challenges to retail banks responsible for protecting their customers’ data and money.

NetGuardians overcomes these challenges AND spots and stops more fraud

Efficiency runs through NetGuardians’ fraud prevention software. By learning and analyzing the behavior of each and every customer in real time, NetGuardians software correctly identifies anomalous transactions associated with each account, dramatically increasing the fraud-detection rate without adding friction.

97%

Fraud detection rate

0.3%

Reported hits (blocked transactions)

The software is already part of the global financial ecosystem as it is embedded into the banking platforms of major vendors including Finastra, Avaloq, Finacle and Mambu and is available on premise and in the cloud. As a result, it can be installed easily and quickly with minimal impact on the existing processes of any bank and the experience of its customers.

How it works?

NetGuardians software overcomes the challenges facing retail banks in the following ways:

Prevents fraud in real time, operating at scale
Highly efficient at identifying both known and new types of fraud
Allows banks to contact customers as quickly as possible, as rarely as possible
Helps build and maintain customer trust and loyalty

Reduces false alerts by up to 90 percent
Reduces investigation time by up to 93 percent
Reduces operational losses by up to 77 percent
State-of-art technology reduces the involvement of data science

NetGuardians’ community

Collective AI/peer-group comparisons across the global NetGuardians client community makes the software even more efficient between 20 and 30 percent more.

Used by leading retail banks worldwide such as UOB Singapore, NetGuardians offers the state-of-the-art fraud prevention to combat financial fraud.

Some references

Read success stories

AKB

AKB wanted to simplify the fraud mitigation process and make it faster. It also wanted the new system to monitor transactions across all channels in real time.

The bank achieved 90% reduction in the number of false positives compared to the previous rule-based system.

Sidian Bank

Sidian Bank wanted greater visibility over its back-office core banking, to bring more rigor to its controls and processes, and produce easy-to-understand reports.

Even before the implementation was complete, the software spotted and stopped a fraud at Sidian and another bank.

Acleda Bank

Cambodia’s largest bank wanted to detect fraud before it happened and reduce its operational costs.

The bank could save time on compiling detailed reports – falling from one day a week to between 1 and 2 hours. There has been an immediate decrease in frauds.

Solutions

Payment fraud

Stop fraudulent transactions due to social engineering or scams such as invoice scam, CEO fraud, etc. Meet PSD2 and SWIFT CSP requirements.

Internal fraud

Prevent internal banking fraud due to employee collusion, internal-external collusion, internal controls bypass by client advisors, etc.

Discover how retail banks worldwide achieve up to 77% reduction in operational losses while analyzing more transactions in real-time.

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